Pomerium

Vision
Statement
Disclaimers
1 Not a guarantee of the future
All information included in this document is provided without any or all guarantees. Pomerium Pte. Ltd. (hereinafter
Pomerium) and the Pomerium team provide no guarantee and hold no liability over any consequence. Also, information
on Pomerium X in this document discusses future expectations. Hence, every expectation in this document, including
information, prospect, roadmap and development schedule, are subject to update or revision. Pomerium provides no
guarantee of the accuracy or integrity of information included in the document. Also, no expression in the document shall
constitute the guarantee that a future event will occur. Pomerium will make its full effort to achieve the goals suggested in
the document but may change or fail to achieve the goals because of unexpected situations or conditions. Please be
advised that Pomerium is subject to no obligation or contract to update or revise information or roadmap in this document.

2 Not an investment offer

This document is written solely to provide information. Every content included in this document does not constitute or
intentionally suggest any or all kinds of investment, purchase and/or sale of virtual assets, and/or guarantee or
recommendation and shall not be used as a basis of any relevant contract or investment decision under any
circumstance.

3 Not any or all kinds of advice

You shall conduct the preliminary investigation on your own accord and comply with legal regulations on virtual assets
and the capital market of your residential area and country. Pomerium strongly recommends you independently
consult with relevant experts, and it is deemed that you have already taken such a measure in the case of any action
relying on this document.

4 Not any or all kinds of basis of agreement

This document shall not constitute a participation in any agreement or be utilized as the basis of any investment decision.
In the case where there is an agreement between you and Pomerium and any discordance between this document and
the agreement exists, the agreement shall have precedence over this document.

5 Legal regulation risk

Regulatory status of virtual assets, digital assets and assets issued on blockchain is still uncertain or unclear in many
jurisdictions. Any legal or regulatory change or certain decision of the government or financial institution in your
residential area may adversely affect the functioning or operation of any of the corporations or entities mentioned in this
document, and they may not function as intended or may cease to function completely.

6 Others
This document discusses some aspects of Pomerium X and does not provide comprehensive or exhaustive coverage of
Pomerium Contents of this document are subject to change or revision depending on the change in relevant legal
provision or regulation, operation status and future prospect of the industry, and the executives’ decision. Regional or
national policy on and adoption and introduction of virtual assets may change, consequently making the relevant
blockchain system or token commercially worthless. Where references are made to third-party websites or sources of
information, further verification of their accuracy or adequacy may have not been conducted, and we do not provide
any warranty as to their content.

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 Pomerium Vision Statement

1 Legacy Web3 Gaming Platforms

The purpose of web3 games realizing the true open economy by avoiding data manipulation via DLT (Distributed
Ledger Technology) with enhanced transparency and security, such as blockchain, and granting the actual ownership
of in-game items to users is to bring innovation to the traditional centralized gaming market and provide novel user-
centric gaming experience. Shifts in the gaming market brought the rise of web3 gaming platforms, and those platforms
reduced considerable technical workloads, such as learning time and cost of new technology stacks and maintenance
for web3 technologies.

However, web3 games failed to proceed beyond the mass adoption stage despite efforts throughout the industry. One
of the reasons is that the existing web3 gaming platforms are mere web3 game builders incapable of offering a proper
solution to overcome the following fundamental problem of web3.

1.1 Peripheral and Blind Token Issuance

There is no rule that a web3 game has to issue a virtual asset. In fact, many web3 games rely solely on NFT (Non-
Fungible Token) for their operation. However, the existing web3 gaming platforms force onboarding gaming companies
to issue tokens for the sake of expansion of the value chain of the token issued by the platform provider and because of
technical limitations inherent in blockchain. Game developers and gaming service providers shall be allowed to choose
a token or NFT with unique purpose and function suitable for their games’ models and goals.

1.1.1 Use of Game Tokens

Monetary Use Use as the currency for in-game purchase, trade and reward.

Economic Use Token trade inside and outside the game providing economic benefits.

Participatory Use User participation in the game’s policy via the governance feature of the token.

Enhancing the scalability of the game through compatibility with other blockchains or
Scalability
platforms.

1.1.2 Use of Game NFTs

Uniqueness Scarcity of rare and unique items, characters and lands.

Ownership Ownership clearly recorded on and guaranteed by the blockchain.

Repurchase Transaction outside the game to earn actual economic value through gameplay.
and Resale

Cross-platform Usability in other games and platforms.

Usability

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 Pomerium Vision Statement

There are only a few successful web3 gaming communities with enough purchasing power to issue game tokens to
reward users and even raise funds. For there are regulatory barriers against game tokens in contrast to NFT, which has
recently begun to be permitted in Google Play Store, an objective and thorough consideration is required.

1.1.3 Advantages of Issuing Game Tokens

Seigniorage Additional fund raising through token.

Revitalizing Using tokens as an in-game reward to revitalize user participation.

User Participation

1.1.4 Difficulties in Issuing Game Tokens

Building sustainable tokenomics, deploying it on the blockchain, and operating it require a
Complexity and
high level of complexity and expertise, resulting in development time and fixed costs for
Fixed Cost
specialized personnel

Legal and The issuance of game tokens may be deemed as financial products or virtual assets,
Regualtory Risks potentially leading to various platform regulations and legal issues

1.1.5 Advantages of Issuing Game NFT

Simplicity Relatively simple integration process without complex tokenomics designing process

Economic
NFTs are unique assets with individual values capable of providing larger liquidity to users.
Liquidity

Contribution Through the governance function of tokens, users may participate in game policies

Designing a high-level equation of token economy to support a sustainable P2E (Play to Cash-out) model while
managing financial regulations and legal risks can be challenging for ordinary gaming companies. When such
companies are forced to issue tokens as a condition for using web3 platforms, they will have to hire additional
specialized personnel to use the platforms, and the workloads in non-specialized areas will eventually reduce the
effectiveness of using the platforms.

1.2 Risk of Being Subordinated to a Certain Mainnet

Although web3 games provide advantages, including transparency, security, and enhanced property ownership and
liquidity, through blockchain rather than centralized servers, many risks also follow them. In particular, web3 game’s
subordination to a certain mainnet may cause serious problems to both users and game developers

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 Pomerium Vision Statement

1.2.1 Scalability
Failure to scale a certain mainnet can also affect the performance and user experience of games, and transaction
delays or high gas fees may hinder users from enjoying the game.

1.2.2 Stability and Security

Security problem of the selected blockchain may endanger users’ assets.

1.2.3 Ecosystem
Subordination to a certain blockchain limits the scope of activity within the blockchain’s ecosystem and prevents the
web3 game from enjoying the benefits of other blockchains, restraining the growth of the game.

1.2.4 Economic Cost

If the blockchain becomes economically inefficient due to various reasons, such as policy changes in the blockchain
infrastructure and increased transaction fees, the additional costs may be passed on to the game developers

1.2.5 Compatibility
If the compatibility with other blockchains or protocols is limited, portability of game assets and interoperability between
games are constrained.

1.2.6 Regulatory Risk

If the use of the certain blockchain is restricted under the regulations of the government or regional authority.

1.2.7 Networking Effect

Reduction of the community base of a particular mainnet as a result of the mainnet's loss of popularity may limit the
number of people playing the game as well.

1.3 Not-user-friendly Web3 UX

Introducing the wallet to the web3 game while maintaining the inherent complexity of blockchain, such as wallet setting,
transaction fee and private key management, is not an easy decision. Furthermore, removing the wallet inside a web3
game and integrating the wallet and game account on a specific external site to play the game can lead to a number of
unpleasant user experiences (UX) as users move in and out of the game and website.

1.3.1 Complex Accessibility

Users shall sign in to a separate external site and go through multiple levels of authentication processes to play the
game, and this increases the entry barrier and can be overwhelming, especially for users unfamiliar with blockchain and
web3 environments.

1.3.2 Interrupted Flow

Repeated movement between the game and the external wallet website hinders users’ immersion into the game.

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 Pomerium Vision Statement

1.3.3 Data Consistency

Maintaining data consistency and concurrency between the external wallet and the game is a difficult task.
Furthermore, if a transaction conducted on the external wallet is not reflected on the game immediately, it may harm
the UX and potentially lead to a decrease in the game's user activity rate

1.3.4 Requirement of Knowledge on Web3

If clear instructions on how to use the wallet and how to sync it with the game are not given sufficiently, the existing
web2 users will face difficulty in accessing web3 games

1 Install Binance 5 Install MetaMask 9 Install Ronin Wallet 16 Access NFT Market 19 Install Axie Infinity

2 Sign up for Binance 6 Create Account 10 Create Account 17 Connect to Ronin Wallet 20 Connect to Ronin Wallet

3 Purchase Ethereum 7 Store Mnemonic 11 Store Mnemonic 18 Purchase Axie NFT

4 Transfer Ethereum 8 Receive Ethereum 12 Verify Email Address

13 Connect to Metamask

14 Signature

15 Ethereum Bridge

Figure 1-1. Typical 20-Step Process to Play Web3 Games

1.4 Token-biased Platform Obscuring the Points of Web3 Games

A web3 game refers to an open game providing more freedom, transparency and ownership through combination with
the blockchain technology. Reflecting on such an essence, simply issuing virtual assets may not fulfill the full benefits
and philosophy of web3 games, because cryptocurrency is still heavily regulated so that the publishing scope must be
managed on a national or regional basis, and market strategies resisting such regulations paradoxically hinder
openness and mass adoption.
Web3 gaming platforms shall focus on the essence of "Why web3" - "Why do game companies convert their games to
Web3" - and be able to provide an alternative solution. However, existing platform consoles are mostly focused on
issuing and managing tokens and provide insufficient solutions to realize the fundamental goals of Web3 gaming, the
increased revenue and improved game KPIs.1

1.5 Lack of Platform Transparency to Prevent Dispute

Web3 gaming platforms handling game asset services for many game companies, including staking and marketplaces,
require greater transparency and reliability of the settlement process in complex and diverse sections.

1 Key Performance Indicator : e.g. Download, DAU/MAU

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 Pomerium Vision Statement

In particular, for blockchains only store results, information about by what conditions or calculations the results were
derived or determined is usually not recorded. Moreover, transaction fees and slippage2 on the network may change
dynamically from time to time, making it difficult for users to easily resolve disputes in the event of unexpected
settlement results because of limited access rights and the subjectivity of the platform's data interpretation. The
existing platforms where lack of a transparent audit mechanism within the platform prevents the verification of causality
are vulnerable to the following threats.

1.5.1 Loss of Reliability

Concerns about data manipulation and fraudulent transactions may cause users to lose trust in transactions or events
on the platform, resulting in the decreased platform value and user exodus.

1.5.2 Unreliability of Offchain Data

The integrity or accuracy of offchain data (data processed within the platform) associated with the blockchain is not
guaranteed by the blockchain, leaving room for disputes.

1.5.3 Distrust of Games and Partners

Loss of trust in the platform leads users to the distrust of games connected to the platform and the entire ecosystem
network connected to partners, undermining the long-term growth and sustainability of the ecosystem.

2 Disparty between the expected price and the actual price

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 Pomerium Vision Statement

2 Models and Ideas to Solve Problem

Web3 gaming platforms should utilize blockchain and DLT to bring a new paradigm to game economy and users’
gameplay, but so far, they have suffered from many of abovementioned limitations and problems. In this chapter, the
Pomerium Team discusses the theoretical background for various models and ideas which may provide a radical
solution for these matters and make Web3 gaming platforms more sustainable and user-friendly. We aim to suggest a
new direction for web3 gaming platforms to maximize their potential and provide a better experience for both game
developers and users.

2.1 Deterministic Immutable Event Streams3 for Liquidation of Game Assets

Although a blockchain-based token is a usual solution for the asset liquidation, token issuance and management require
much more monetary economic complexity in establishing tokenomics compared to NFT issuance, and there must be
realistic capacity to allocate much time and money to so-called web3 businesses such as community and partner
management in addition to game application development.

Is it really impossible to create an effective open economy without tokenizing game assets while maintaining Web3
characteristics? How can we trust the game company’s asset DB without issuing tokens on the blockchain? Pomerium
Team presents a new approach to secure the data immutability of the DB containing game assets.

This solution process data to become immutable, using DLT API on Layer 0,4 while maintaining the asset DB of existing
games. The core of the solution is based on a tamper-proof ledger model where the causality is guaranteed and
ensures atomicity of events through the SB-2PC protocol5 between multiple contracting parties. Furthermore, CQRS
(Command Query Responsibility Segregation) and event sourcing patterns are applied to efficiently manage complex
transactions and events, and replay and retry processing, ensuring the consistency.

Game Corp backend Platform

Staking
Ledger API
End-to-end Synchronization
Encryption And Validation Endpoint
Swap

Layer 0 Layer 1

DLT DeFi (SC)

Ledger DB DAML-OF (SC)

Figure 2-1. Onboarding of Game Corp. backend’s Layer 0 via DLT (Oraclizer)

The combination of the following technologies and features allows game companies to ensure the immutability of game
assets such as gold and diamonds through DLT APIs without the need for complex tokenization processes on the
blockchain, and allows users to easily exchange their gold and diamonds for cryptocurrency based on a higher level of
trust in their game assets.

3 Immutable event algorithm which always generates a constant result for a certain input through a constant process.
4 A protocol type upon which diverse Layer 1 blockchains can be built.
5 Stakeholder Based Two-Phase Commit Protocol : Stakeholder-based atomic commit protocol for ensuring the integrity of transactions

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 Pomerium Vision Statement

2.1.1 Event Sourcing and CQRS : Consistency, Scaling

Every transaction, such as changing the state of a contract, is
App or captured as an individual event with an event sourcing
API Client
pattern and logged to the distributed ledger. Such a write
path is an immutable stream of events where uniqueness of
every event is guaranteed, so that events can be cached and
read asynchronously from the read path.
API Write path
CQRS is a pattern that clearly separates the commands and
queries of a transaction. It is the optimal pattern to realize the
Event log
(DLT) scalability of distributed ledgers, enabling performance
optimization. When combined with event sourcing, it may
Read Read path
recover and reproduce the state of the system more easily
cache
and clearly through the event storage.

Figure 2-2. Event Sourcing, CQRS with DLT

2.1.2 SB-2PC Protocol : Atomicity

For example, when trading game NFTs and tokens on a marketplace, a custom SB-2PC protocol by a contracting party
model ensures the integrity and atomicity of distributed transactions between parties and makes consensus on the
order and validity of transactions. The contracting parties validate parts of the transaction information, arrange the
order of execution through a sequencer, and receive responses from all participants by an arbiter model to make the
final decision regarding the success or failure of the transaction.

Alice Bob Pomerium X Marketplace Sequencer Mediator

transaction request
recipient@ts1
(Views, recipient)

(V1, V2, V5)@ts1

(V1, V3, V4)@ts1

(V2, V3)@ts1 (V4, V5)@ts1
response

response

response

response
response@ts2
transaction validation
execution order response@ts3

Transaction verification result response@ts4

response@ts5
result@ts6

result
result@ts6

result@ts6 result@ts6

Figure 2-3. Distributed Transaction Flow of DLT Contracts via Custom SB-2PC Protocol

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 Pomerium Vision Statement

2.1.3 Cryptographic Global Synchronization : Integrity & Immutability

How immutable data are cryptographically recorded, verified, and authenticated depends on the implementation. Plus,
non-repudiation is implemented with the design pattern of offer and acceptance. In the ledger synchronization process,
node participants’ execution commitments are separately stored while copies of the log consisting only of fingerprints
or hash are globally shared to maintain the constant status of node participants. In other words, the data immutability
can be achieved eventually by proving that the parties' data exactly matches active evidences in the GSL (Global
Synchronization Log) hashed with one-way cryptographic functions.

Platform Participant Platform Operator Platform Participant

Game Application Platform Application Game Application

Integration

Layer 0
Business Logic Business Logic Business Logic

Private Contract Store Private Contract Store Private Contract Store

Global Sync Log Global Sync Log Global Sync Log

Data and Execution Commitments

Figure 2-4. Global Synchronization of DLT

2.1.4 Principle of Causality : Durability

Causality is one of key concepts in DLT and defines how diverse transactions and calculations are correlated
depending on the time and circumstances. This also refers to a finite directed acyclic graph (DAG) of transactions that
is transitively closed. Transitive closure is a way of indicating if a path exists between each node in the graph. In other
words, if there is a path from node A to node B and a path from node B to node C, there is a path from node A to node C,
and so on. (e.g., v1 → v2 + v2 → v3 = G, G = v1 → v3)

We mentioned earlier that DLT's ledger model guarantees immutability. A transaction cannot be modified or deleted
once it is executed by the event sourcing pattern. Such immutability, along with causality, contributes to the
persistence of data. Since DLT's causality model clarifies the order of execution of transactions, the state of the ledger
is updated in a consistent order. In addition, transactions on DLT are atomic. In other words, a transaction is committed
only when all calculations succeed. Such atomicity prevents invalid transactions from being reflected on the ledger,
increasing the persistence of data. Event-sourcing patterns and causality make it clear which transactions affected
other transactions. This helps you track the lifecycle of your data and validate its persistence if necessary.

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 Pomerium Vision Statement

Blockchain DLT
Guarantee of Cryptographic Order of Results Guarantee of Order of Events by Causality
→ Eventual Immutability → Eventual Immutability

Figure 2-5. Discrepancy in Resultant Immutability between DLT and Blockchain

2.2 Two Strategic Options for Multichain and Interoperability

When trading items or characters acquired in web3 games as NFTs, there are two technical strategic options to
consider in order to address the low scalability, instability and incompatibility caused by subordination to a certain
mainnet and risk dependency of the mainnet itself.

2.2.1 DLT on Layer 0 Topology

DLT is a unique protocol of Layer 0 and has interoperability with diverse Ledger DB6. It is realized via two major
components: DLT runtime and Ledger DB driver. The DLT runtime is responsible for the execution of the contract
language. That is, it executes the business logic written in the DLT's contract language, and generates and validates
transactions. The Ledger DB driver serves as the interface between the DLT's runtime and the actual ledger. It allows
the DLT runtime to interoperate with multiple ledgers, and different drivers can be used depending on the detailed
implementation of the ledger (e.g., database type, network protocol, etc.). It allows you to feel as if you are using a
single blockchain while using multiple blockchains and ledgers of Layer 1 on Layer 0. A blockchain, ledger or
database(DB) system which can be used as a ledger through the unique driver of DLT.

Layer 0 DLT
Participant Nodes Consensus Protocol

Ledger Model

Ledger Driver

Ledger DB (Optional)

Figure 2-6. Interoperability of DLT through Ledger DB Drivers

2.2.2 NFT Interchain Network

For example, if a game company intends to strategically sell NFTs already issued by BSC at the market on the Polygon
Mainnet, they can enlist the help of NFT interchain partners such as HAVAH (3rd Party). Through HAVAH's API and HAVAH
Mitter, NFTs issued by BSC (Source Chain) are registered with HAVAH's Lock contract. In this process, the NFT's metadata
and ownership information are stored in HAVAH Mitter, and HAVAH Mitter acts as a relay to mint NFTs with the same
metadata in the polygon (Target Chain) to ensure interoperability of NFTs. Finally, the status and ownership of NFTs can be
verified using the HAVAH Scan API.

6 A blockchain, ledger or database(DB) system which can be used as a ledger through the unique driver of DLT

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 Pomerium Vision Statement

Source Target Marketplace

Figure 2-7. Onboarding NFT Multichain Marketplace Using HAVAH Interchain mainnet

2.3 Seamless UX Through AA(Account Abstraction)

Among numerous DApps of blockchain, Web3 games particularly need to communicate more frequently with the
blockchain, pay greater gas fees, repetitively require signatures depending on the process, and require seed phrase
and private key management, leading to significantly deteriorated UX compared to general game UX.

ERC-4337 Standard Proposal relieves the ambiguity of two blockchain account types, allowing a more efficient and
flexible management of account roles.

Figure 2-8. In-Game Wallet Demonstration via Pomerium AA SDK

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 Pomerium Vision Statement

2.3.1 Gas Sponsorship (Gasless)

Paymaster is one of the components that serve the most important role in AA. Paymaster allows game developers or
the platform to sponsor gas fees, and users no longer need to bear the inconvenience of possessing mainnet token;
they can enjoy Web3 games just like playing any other games without having to pay gas fees every single time. AA can
greatly contribute to user influx as it can fundamentally resolve issues arising from the inefficient utilizing mechanism of
blockchain.

2.3.2 Social Recovery

AA minimizes the complexity and limitations of EOA (Externally Owned Account) private key storage and recovery to
enhance blockchain usability. Thanks to this, users can easily generate accounts linked to their social media accounts,
and enjoy diverse and easier recovery options should they misplace or forget their ID or means of access required to
enjoy games. Furthermore, users can utilize a more advanced account recovery mechanism such as Social Recovery
through AA, based on which they can regain access to the account through preset friend or family accounts or split up
private keys.

Category Server-side Wallet EOA AA

Wallet Generation UX 2~3 stages 5~6 stages 2~3 stages

Swap UX 3~4 stages 3~4 stages 1~2 stages

Staking UX 3~4 stages 3~4 stages 1~2 stages

Gas Fee

Security Cost High High Low

Financial Regulations
(Wallet License)

Figure 2-9. Comparison of User Experience, Convenience, Security and Regulatory Aspects Across Different Wallet Types

2.4 UTXO and Account (hybrid balance model)

UTXO represents unused transaction outputs as the amount of digital assets remaining after the transaction is executed.
On this account, UTXO allows transaction tracing, and also can secure scalability as the movement of assets is parallel
recorded. Furthermore, as UTXO maintains bookkeeping in the same way as accounting, it is favored in financial assets
services or game asset platforms which prioritize transaction records. In particular, when applied on platform services, it
can make immutable detailed transaction records of participants, preventing disputes between platform users.

Account Model is a model on transaction and status management which stores events and user interactions in a network
status database on blockchain platforms such as Ethereum. In particular, as the Account concept provides a high level of
abstraction like general financial systems, the model is not only user friendly, but also the developers can easily process
complex logics and status changes using less codes.

The Pomerium Team proposes a complex model combining both the UTXO Model, which allows transparent tracing and
audit of transactions, and the Account Model, which can process complex contract logics. Through this, the platform
offers UTXO Transaction Log and Audit Trail7 between game developers on board and users to ensure great
transparency which can prevent disputes, and at the same time maintain development efficiency and compatibility of
blockchain applications.

7 System recording each stage of transaction which can be tracked with the source of transaction records or financial data.

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 Pomerium Vision Statement

3 Tokenless Web3 Gaming Platform, Pomerium X

Pomerium X is the next version of ‘Pomerium’, a Web3 gaming platform that supplies in-house web3 games based on
original IPs and offers web3 gaming infrastructures such as swapping, wallets, NFT minting tools, and NFT migration. As
a true Web3 gaming builder that provides the infrastructure and console for Web2 to Web3 transition, game developers
on board Pomerium X can use game-specialized multi-chain/multi-resource NFT bulk minting, AA in-game wallet SDK,
Audit Train, multi-chain marketplace, and Web2-Web3 bidirectional swap API thanks to the in-platform developer
console, and devote its focus on the fundamental goals of the converted Web3 game and its development.

Figure 3-1. List of Games on Pomerium X

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 Pomerium Vision Statement

Without With

Game Application You Build Game Application

NFT Minting Operation Wallet Intergration

You Build Web3 Game and Update

Security Authentication Fee Management

Infrastructure Operation User Accoount Management

Web3 Gaming Platform

Back Office Data Interation, Operations, and Analysis

NFT Store Tokenomics

Marketing
마케팅 Marketplace

Multi-chain Node (Layer 0)

Blockchain Node (Layer 1)

Web3 Connections Web3 Connections

DApp Wallet Chain DApp AA Wallets Chains

Figure 3-2. Key Concept

Tokenless Multilayer In-game

Web3 Onboarding Interoperability Wallet
Simple tokenless transition to Web3 Multilayer interoperation among game In-game wallet SDK (3 mainnets)
assets, tokens and muti-chains via AA wallet

Multichain Inventory Highly

Support Staking Transparency
Supports various multichains (5 mainnets) Game asset management through High platform transparency based on
for NFT issuance and transactions composite management of game UTXO model and Guardians
assets, tokens and NFTs

Figure 3-3. System Overview

3.1 Sub Products

Pomerium X provides various services to meet the needs of every game developer and user, from the infrastructure that
supports the transition from Web2 to Web3, to game asset management and transaction environment. Pomerium X
exceeds the boundaries of a mere Web3 gaming platform to provide a new paradigm for Web3 game build that does not
issue tokens, and to offer management and transaction of Web2 and Web3-issued composite digital assets, and other
various services that allow the participation of the overall ecosystem through Guardians.

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 Pomerium Vision Statement

3.1.1 Developer Console

Developer Console provides game developers the
environment to easily onboard their games without
the token issuance process. Game developers can
distribute their games on Web3 environment without
a complicated authentication and tokenization
process. Also, the console supports various mainnets
(Ethereum, Polygon, BSC, etc.) in issuing NFTs,
further enhancing the diversity and accessibility of
digital assets.

3.1.2 NFT Store and Marketplace

NFT is the most important asset in Web3 games.
Pomerium X’s NFT Store and Marketplace allow
efficient game asset transactions centered on
NFT. NFTs issued by various games and
mainnets (Ethereum, Polygon, HAVAH, Klaytn,
BSC) can be traded by each game, item or
mainnet on a single integrated platform.

3.1.3 Inventory Staking

Composite staking feature of various assets
obtained from Web2 and Web3 requires Figure 3-4. NFT Bulk Minting in Pomerium X Developer Console
advanced technology. Based on its self-
developed Layer 0 DLT, Pomerium X offers
a novel method that allows intuitive staking without having to convert their game assets to Web3. PMG and PMR tokens
obtained through inventory staking can be used to win various benefits and assets in games.

3.1.4 Swap
Conventional game assets (web2 assets) and PMR tokens (web3 assets) can be swapped for each other without any
blockchain oracle issue through DLT on Layer 0.

3.1.5 Guardians (Advancement)

Through advancement, Pomerium supports not only Windows but also other various OS such as Linux or Mac, and
provides live update feature which allows additional updates during live status after a single installation, offering
greater accessibility for a broader user base. Guardians is the only observer node which can view every contract in the
DLT ledger model where privacy is maintained, ensuring transparent and reliable game asset transactions. Furthermore,
advanced Guardians allows a more intuitive token management service.

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 Pomerium Vision Statement

4 In-Depth Technical Explanation

This part explains Pomerium X’s technological specifications and significance that exceeds the boundaries of a mere
Web3 gaming platform, offering composite Web2 and Web3 digital asset management and up-to-date Web3 gaming
ecosystem infrastructure, and the core technologies required for such integration. With the technologies specified
below, the Pomerium Team opens up new research and application possibilities across asset management issued on
Web2 and Web3.

4.1 Design Direction

As a platform, Pomerium X aims to provide a
Distributed Databases
Web3 game builder and environment where
platform participants, such as game developers
and users, can onboard, exchange, trade, and
manage digital assets in a secure and transparent
environment without having to worry about
Distributed Ledgers (DLT)
blockchain-specific issues.

4.2 Core Component

Pomerium X’s design is centered on unlocking the Blockchains
full potential of blockchain in the game industry.
To achieve this, we came to the conclusion that
we needed to introduce several new technologies,
and so the following two key technologies were Permissioned
introduced: DLT, which uses Haskell-based domain Blockchain

specific language(DSL8) and a unique ledger model

in Layer 0 stack, which is a precursor to Layer 1,
and AA wallet, a standard wallet proposed as the Figure 4-1. A Position of Distributed Ledger Technology
standard by ERC-4337. By doing so, we hope to
make blockchain technology more widespread in the gaming industry, which will have a positive impact on users who
love games and blockchain.

4.2.1 Pomerium Zero

Multichain / Layer 1&2
Account, Permissionless,
Execute transaction, NFT
Pomerium Zero refers to the DLT which serves as the contract agreement layer
of Layer 1 (mainnet) in Layer 0 to warrant the finality of the contract. Layer 1 is the
stack that executes the actual transaction, and warrants the finality of the
transaction. Immutable data and contract information in Layer 0 are approved in
advance and ex post deposited and fixed to Layer 1. This means that
transactions originating from DLT contracts are verified and reflected on the
blockchain based on its own consensus mechanism.

DLT / Layer 0 Pomerium Zero is a technology that processes game assets with immutable
UTXO, Permissioned, ledger, through which the minor management resources and fixed costs
Consensual contracts, Game Asset associated with token conversion process in the pre-Layer 1 phase and post-
tokenization can be reduced significantly. The technology also enables multi-
chain, in which various blockchains can be integrated as if they were one big
blockchain.
Figure 4-2. Concept of Layer Configuration between Pomerium Zero and Blockchains

8 Domain Specific Language : Programming language optimized for specific fields

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 Pomerium Vision Statement

4.2.2 Pomerium Zero Operation Concept

Generally, Layer 0 technology refers to the most basic level of blockchain architecture. Normal blockchains start with
Layer 1, where actual transactions and smart contracts are executed. However, Layer 0, which exists a level below this,
is in charge of basic communication and connectivity of the blockchain network. The main purpose of Layer 0
technology is to enhance the scalability and efficiency of the blockchain. Thanks to Layer 0, the blockchain can process
game assets with immutable ledger in the pre-Layer 1 phase, which can reduce minor management resources and fixed
costs incurred during token conversion process and tokenization. Furthermore, the common unique ledger model and
driver provided by Pomerium Zero allows not only databases such as Oracle, Amazon Aurora, or QLDB, but also EVM-
compatible blockchains such as Hyperledger BESU, Ethereum, Polygon, or BSC can be used as ledger database.

Pomerium Zero technology is a core component of Pomerium X that improves the scalability, efficiency, and security of
Layer 0. The technology will reduce the complexity of the blockchain area of the overall Pomerium X architecture, and
make the platform more accessible and widely utilized by platform users.

Layer 1&2 (Optional)

Interoperability
Driver Driver for Multichain

Layer 0
Participant Nodes Consensus Protocol

Ledger Model

Ledger Driver

Ledger DB (Optional)

Figure 4-3. Interoperability between Pomerium Zero and Multichain

4.2.3 Haskell Based Contract Language

Pomerium Zero uses Haskell based domain specific language. Haskell is a purely functional language with a high-level
abstraction and strong type system. Using such properties of Haskell, safe and precise smart contracts can be written,
compiled and executed at runtime.

4.2.4 Contract Language Compiler

Smart contracts coded using Pomerium Zero’s domain specific language are packaged into archive files through
GHC(Glasgow Haskell Compiler), a Haskell compile engine. These archive files include contract language module, data
module, smart contract logic, and other dependency information. Compilation is executed through the following
process:

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 Pomerium Vision Statement

Compiler first analyzes the source code to detect basic errors such as syntax error or
1 Source Code Analysis
type mismatch.

Transformation into
2 Code with correct syntax is transformed into intermediate representations of Haskell.
Intermediate Representation

Intermediate representations undergo various optimization processes, which include

3 Optimization
improving execution speed and removing unnecessary operations.

Lastly, optimized intermediate representations are transformed into bytecodes which

4 Bytecode Generation
can be run by DLT.

The safety and accuracy of generated bytecodes are verified through various
5 Verification
verification processes.

6 Distribution Verified bytecodes are distributed to the DLT.

Figure 4-4. Order of compile process

Haskell Contract Command +

(Text) (Text) parties

lexer + parser
parse tree ledger
(AST)
parse tree

transaction
preprocessor

instances
contracts
(AST)
parse tree
(AST)

renamer + type checker Daml-LF interpreter

typechecker tree
(AST) ANF
(AST)
desugarer
GHC Core GHC Core
(AST) (AST) compiler

simplifier LF converter
Daml-LF
GHC Core Daml-LF (AST)
(AST) (AST)

STG Converter postprocessor Daml-LF type checker

STG Daml-LF Daml-LF
(AST) (AST) (AST)

code generator encoder decoder

Assembly .dalf .dalf
(machine code) (Protobuf) (Protobuf)

AST
AST (Abstract Syntax Tree) in Haskell’s GHC compiler refers to the data structure which abstracts the syntax structure, using which the
compiler analyzes, optimizes and generates code.

STG
STG(Spineless Tagless G-Machine) is one of the intermediate representations of GHC(Glasgow Haskell Compiler), and is a phase required
to transform Haskell program into executable code. It represents and optimizes the program’s calculation structure and transforms it into
executable machine code.

desugarer
The process of transforming a grammatically simple representation of Haskell code into a more complex internal structure

Figure 4-5. Smart Contract(DSL) Compile Process (source, DigitalAsset)

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 Pomerium Vision Statement

4.2.5 Pomerium Zero Runtime

For the archive file of contract code to actually be executed and the smart contract to operate in Pomerium Zero, the
runtime environment which can manage and execute them is required. Runtime serves many roles from distribution to
smart contract execution, status management and event processing. It generates smart contract instances based on
various contract templates, adds transactions to the queue, and processes them in order according to the smart
contract logic. Here, the contract status is saved in Ledger DB, and runtime manages the operations for reading and
writing this status. Lastly, it generates events based on the results of smart contract operation, and detects these events
to send notifications to other smart contracts or external systems when necessary.
Pomerium AA

(ERC-4337)

(ERC-4337)

Pomerium AA
CA
AA Wallet

AA Wallet
CA
Trigger

Trigger
Party A DLT DLT Party N
SDK

SDK
Game Ledger EVM Ledger Game
EOA EOA

EVM-compliant chain network

Figure 4-6. Pomerium Zero Runtime Topology

4.2.6 Ledger Model

Pomerium Zero’s ledger model relies on a custom SB-2PC protocol to ensure data consistency across node
participants, with a synchronization process that provides high throughput and low latency. It also offers a global virtual
shared ledger model where the entire data is not stored on every participant's ledger. This is highly beneficial in terms
of data storage efficiency and security, prevents the duplication of unnecessary data, thus increasing the efficiency of
storage space, and also improves security by ensuring that each participant only has access to the data they need.

Participant Ledger Participant Ledger

Alice Bob

Participant Ledger

Virtual Shared Ledger

Charlie

Figure 4-7. Ledger Model and Shared Ledger Concept (source, DigitalAsset)

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 Pomerium Vision Statement

Integration Platform Platform Platform For instance, even though there are
Participant Operator Participant a total of 6 active contract sets
configured, each node participant
Game Platform Game
Application Application Application actually only has access to a subset
of 2-4 contracts that they are
invited as a party to (shown in blue).
A strict ledger model where access
Business Logic Business Logic Business Logic to ledger data is limited to a specific
subset of contracts associated with
Distributed Distributed Distributed the contracting parties can maintain
Ledger Ledger Ledger data privacy and significantly
reduce security risks.

Figure 4-8. Contract Logic and Distributed Ledger Operations of Node Participants

4.2.7 Pomerium Zero and Multi-chain (Layer 1) Data Interoperability Model (Serial)
Directed
Acyclic
1 Graph
Smart Contract
(DAML, Haskell)

5 Driver for Multichain

4
3

Blockchain Smart Contract

Layer 1 (Solidity, ERC-4337)
Linked List

The contract process between contracting parties commences on Layer 0. Here, the contract on Layer 0 is executed
1 through DAG (Directed Acyclic Graph) which can clearly define and track the contract execution process and the
causality of status changes

Once node participants reach consensus, Layer 1 (mainnet) specified on the contract is selected and connected using
2
Multichain Pomerium AA Driver

3 Contract is executed on Layer 1, recorded on the blockchain and the transaction is finalized

4 Layer 1 receives response value from Pomerium AA Driver

Final response of Layer 1 transaction is added to the contract completed on Layer 1 and validated to ensure the
5
consistency of the contract on mutually separated multilayer

Figure 4-9. Design of Interoperability Between Pomerium Zero and Multichain

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 Pomerium Vision Statement

4.2.8 Combined Model of AA and MPC(Multi-Party Computation)

Through AA, a Web3 native solution, UX which toggled the platform, and the game can be greatly improved, and
account generation and login process can also be shortened. However, AA key management is still an important issue,
as users will have to sign userOperations using private keys. AA’s smart contract can adopt several solutions for safe
storage of private keys including security key management systems or exclusive hardware systems such as MPC that
restricts user exposure to key theft.

AA was established as a tool that streamlines blockchain asset management for users and complies with the blockchain
spirit which emphasizes decentralization, transparency and privacy. AA aims to allow transmission of transactions from
the Contract Account (CA) which can program self-determined rules for verification of transactions, through which
features such as gas fee sponsorship, comprehensive transaction processing, and transaction automation were enabled.
However, while AA grants absolute flexibility to transaction validation, it does not make any statement on how the keys
are processed. Therefore, how users safely store and backup their private keys when operating their own AA
infrastructure still remains a concern.

MPC protects users from phishing attacks or seed phrase loss by eliminating the single point of failure generated from a
single key from a single device. MPC places focus on protecting private keys and maintaining the privacy of signer
identity through off-chain multi-signature. MPC was designed to have centralized components that weigh privacy over
transparency, as the concept of MPC was devised using a general encrypting solution, rather than for the sake of
blockchain. As MPC operates based on a mathematical layer, it can also be applied on other various blockchains.

In other words, AA can also be referred to as a smart contract wallet and is mainly related to account management, and
MPC can be referred to as MPC wallet and mainly focuses on key management. While the two technologies are used for
different purposes, they may be misperceived as opposite concepts, as there do exist overlaps between the two. When
MPC is in place, keys can be managed easily and safely, but the benefits from programmable transaction rules such as
gas fee sponsorship cannot be entertained as the fundamental method of verifying transactions does not change.

To conclude, the two solutions each have their own benefits: AA can eliminate seed phrases, and MPC can eliminate
single point of failure in key management. If the two technologies of off-chain MPC and on-chain AA are combined and
adopted across the entire lifecycle of transaction, it can provide an outstanding level of user experience that cannot be
achieved by using only one of them. In the end, the combination of AA and MPC can serve as a better solution for
enhancing the UX and security of Web 3.0.

Private Mempool
Non-Custodial Signed
Wallet TX Relay
User EOA Public Mempool Builder Validator On-Chain

Searcher
OFA Bundles

Figure 4-10. EOA Transaction Flow (source, Blocknative)

Private Mempool
4337 EOA Proxy Signed
Wallet UserOp TX Relay
Public
User 4337 Intent Alt-Mempool Bundler Mempool Builder Validator On-Chain

EntryPoint
Smart Contract

Searcher User Smart

Contract Wallet

Figure 4-11. AA Transaction Flow (source, Blocknative)

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 Pomerium Vision Statement

Signers Private Key Partial MPC Threshold On-Chain

(M of N) Shares Signatures Wallet Signature Execution

Message
(Public Input)

Distributed Key Generation Signing (off-chain) Verification

Figure 4-12. MPC Wallet (source, 1kx)

4.2.9 Pomerium AA (TSS based Self-custodial MPC with AA)

Pomerium AA, a combined model of AA and MPC which supports multichain, divides the key through Web3Auth(3rd
Party)’s Self-custodial MPC9 and store them on user devices and the verification network. The divided keys are
returned to the frontend, and the final signature is generated once partial autographs are combined using TSS
(Threshold Signature Scheme) and the quorum is met.

1 Execute Login

Service Provider
Front-end Application
(Pomerium X, Game) 4
Authentication
Token Verification

SDK
5 1 2
Distributed Signature Issuance

Distributed
Signature Issuance
Social
2 3 Authentication
Login
Token Insuance 3 4
6
Transaction Signatures
7 Distributed Signature Generation 5 6
TSS Share
Creation Web3 Auth MPC
Auth Network

Backup/2FA Device OAuth Factor

Factor Factor Signatures
Multichain

AA Wallet (ERC-4337)
8 Account Creation 9 TSS-based Transaction Creation
CA EOA

9 A type of MPC algorithm that allows Social login, security questions or TEE through MPC-DKLs19 Protocol, allows signing without
interacting with the server, and can be recovered without any third party through recovery code.

23
 Pomerium Vision Statement

Game developers which used Pomerium AA SDK to develop games and their users execute
1 Execute Login social login to register.

2 Social Login User logs in with his/her preferred service using social login UI

3 Authentication Token Issuance When social login is successful, a token is issued

4 Authentication Token Verification The issued social login token is verified on Web3Auth

Once token verification is complete, Web3Auth MPC Authentication Network issues

5 Distributed Signature Issuance distributed signature information

6 Distributed Signature Issuance The issued distributed signature information is stored on Pomerium AA SDK’s OAuth Factor

User stores TSS Share in a trusted device (mobile device, biometrics)

7 TSS Sjare Creation (Additional password or TSS Share backup on external storage as needed)

8 Account Creation Account generated through Pomerium AA Contract based on TSS

9 TSS-based Transaction Creation The corresponding account generates transactions on the blockchain under TSS

Figure 4-13. Integration Structure of Web3Auth, MPC and Pomerium AA

TSS Share generation and signature structure using MPC is an innovative technology located at the intersection of
cryptology and distributed computing. TSS divides one secret key into multiple ‘Shares’, which are then shared with
multiple participants. Through this, a single point of failure is eliminated, and security can be strengthened. Through MPC,
participants can jointly execute calculations without having to directly share their shares, which is essential in generating
digital signature without having to expose the secret key.

User Final Metadata Key TSS Signature

Account Output Used for Metadata Read/Write Access Used Transaction Signing

Web3Auth Area
User Area

Recovery Shares Use Device Social login

Factor 3 Factor 2 Factor 1
1 3 5
Components Components Service Provider
Signatures generated using
Factor Keys 2,3… Factor Key 1 set threshold (Default : 3/5)

Metadata Share Metadata Share 2 4 6

TSS Share TSS Share Web3Auth MPC Auth Network

Social Login Factor

Tokens issued through Social Login service providers preferred by the user are transmitted through Web3Auth authentication network to
generate TSS Shares within the node. While these nodes basically have the threshold value of 3/5, the value may be redefined as needed.

Device Factor
Generates TSS Share on the device trusted by the user, and also generates the final signature of the TSS account with Social Login Factor. This
ensures that the non-custodial settings, which allow safe storage of user assets, are maintained.

Backup Factor
Users may generate TSS Share and store it where desired. This Share can be used with Social Login and Device Factor to generate the final
signature of the TSS account.

Figure 4-14. Structure of TSS Share Generation and Signing via MPC

24
 Pomerium Vision Statement

4.3 Architecture
Pomerium X’s architecture places focus on the four core principles, which are: ‘Enhancing Platform UX’, ‘User Asset
Security’, ‘System Scalability’, and ‘Platform Transparency’. Pomerium allows users to easily access Web3 games
through AA, while game developers can enjoy easier onboard to the platform as they do not need to issue tokens on the
blockchain through Pomerium Zero. System scalability was secured through Pomerium Zero’s multichain interoperation
and ERC-690010, and MPC was adopted to strengthen user asset security. Furthermore, Pomerium Zero’s Observer
Node Topology offers the transparent game asset management environment.

1 MPC 3rd Party 5 Layer 1 (Multichain)

External
Contract

2 User 3
Client Pomerium Validation Multisig
Account (ERC 6900) Plugin

Platform Pomerium AA ECDSA

Client SDK NFT Store Plugin

Game EntryPoint Execution Session Key

Ledger API
MarketPlace Plugin
Client Endpoint

Developer User Staking

Console Interface
Bundler
BNB
Network

AA Wallet
Ledger gRPC Ledger Driver Pomerium AA
Contract PMG
Paymaster
(ERC 4337)

DLT Trigger Pomerium AA

SDK PMG PMR

Observer
6 Node Guardians Node Audit Node

1 MPC 3rd Party Web3Auth MPC SDK

Platform Client Pomerium X Client
2 User Client Game Client Client for game onboarded on Pomerium X
Developer Console Console client for game developers in Pomerium X
Pomerium AA SDK AA Wallet and Web3Auth linked
User Interface Developer Console UI
Pomerium X Ledger API Endpoint Pomerium Zero API
3
(Platform) NFT Store Integrated NFT store for onboarded game developers
MarketPlace NFT marketplace (Supports Multichain)
Staking Inventory staking
Ledger gRPC Executes Ledger API Endpoint requests
DLT Pomerium Zero distributed ledger
4 Pomerium Zero
Trigger Layer 1 transmission trigger in case of consensus between nodes
Ledger Driver Multichain driver
AA Wallet Contract (ERC-4337) Pomerium AA Contract Address
Transactions fees are paid integrally with PMG instead of mainnet tokens, which is burnt after payment.
Pomerium Paymaster
Settlement is made among game developers/users/platform

Layer 1 (Multichain) Bundler Network Transaction Bundling Service (3rd Party)

5
Ethereum, Polygon EntryPoint
Pomerium Account
Validation(ERC-6900)10
External Contract
Guardians Node
6 Observer Node
Audit Node
Verifies UserOp Bundle
User AA Account
Modular contract that uses security mechanisms such as ECDSA, Multisig, or Session Key in the form of plugins
External outer contract that interacts with AA Account
Node which conducts real-time monitoring of Pomerium Zero’s event stream
Audit Node : Node for validating event data stored locally on Guardians Node

Figure 4-15. The Pomerium X Architecture

10 Ethereum’s standard for Modular Smart Contract Plugins

25
 Pomerium Vision Statement

4.3.1 Node Profile Hierarchy

Pomerium X’s Layer 0 node composition is extremely closely related to the platform strategy, and is the core
technological component of the architecture. Each node layer guarantees platform stability, security and scalability, and
provides the basis for the platform to cooperate with various partners. Node hierarchy consists of “Platform Node”,
“Observer Node” and “Participant Node”, and each node assumes a special role.

Node Profile

Carries out node management such as registration, verification and authority management of node participants, and
Platform Node executes common yet mandatory operations for maintaining network stability and continuity.

Guardians Node Receives transaction event stream real-time from the platform and Participant Nodes.
Observer Node
Analyzes all transaction events sent to the local storage of Guardians Node
Audit Node to detect unusual transactions and verifies the validity of data.

Participant Node Pomerium IP

Staking

Game Node Token Swap

Participant Nodes, which can participate as independent nodes by
each game, are in charge of contract execution. Users of games in
each node may execute staking contracts through which they can Game Node-1 Staking
lock up game assets earned through gameplay for a certain period of
time in order to win additional rewards, and game nodes with
Pomerium IP applied will also include contracts through which game Game Node-N Staking
assets can be swapped with PMR.

Figure 4-16. Node Profile Hierarchy of Pomerium Zero

4.3.2 Node Relationship and Roles

Node group consists of platform node and participant node, and is in charge of transactions and consensus between
contracting parties in Layer 0. Observer Node consists of Guardians Node and Audit Node. Guardians Node is the
Observer11 for contracts executed in the node group of the platform, receiving and monitoring real-time all event
streams related to the game assets onboarded to Layer 0. By providing the ledger log to prevent disputes, the
transparency of game asset transactions in the platform is secured. Audit Nodes secure transaction stability through
validation of ledger logs. In contrast to general node groups, Guardians Nodes and Audit Nodes do not participate in
consensus and contract execution.

Contract Execution and Consensus

Node
Node
Real-time Logging Group
Observer of Transaction Platform Anomaly
Group Events for All Participant Transaction
Group Contracts Detection

Node Guardians Audit

Guardians Audit
Group Node Node
Node Node
PC Client (Multi Platform)

Ledger Logs Data Validity

Analysis
Figure 4-17. Node Groups and Observation Nodes Figure 4-18. Node Groups and Observation Nodes

11 A component of contract model with the right to only observe all contracts in the ledger model

26
 Pomerium Vision Statement

5 Pomerium Tokenomics 2
Although Web3 game is an innovative approach toward the gaming industry, the sustainability of Web3 game industry is
under jeopardy due to chronic Web3 game tokenomics-related issues such as economic inequality caused by early
participants’ preoccupation of gains, and insufficient applicability and benefits of tokens of which the application is
limited to in-game currency. Pomerium Team evaluates and analyzes the limitations of existing Web3 game tokenomics
and proposes alternatives.

5.1 Limitations of Legacy Web3 Game Tokenomics

The key to the success of Web3 games lies in designing a solid economy based on monetary economic principles of the
token. Rapid growth of the Web3 game market led to various experiments on Web3 game economy, revealing common
structural issues of the so-called P2E tokenomics.

5.1.1 Unsustainability Due to Unequal Preoccupation of Gains

As typical P2E tokenomics provides greater gains in the earlier stages to catch popularity, its economic model is highly
unlikely to be maintained in the long term. Given the basic structure of tokenomics Providing consistent rewards to
latecomers beyond the initial high returns is a structurally challenging issue within tokenomics.

5.1.2 Lack of Token Utility

Collection DVL MCap/TVL The typical Web3 game economy attempted by
Ethernal Elves Sentinels 1.69% 0.56 many projects tends to be restricted to the
OctoHedz 2.41% 0.62 service frame of P2E and thus insufficiently
provides measures to enhance token utility. For
Scholarz 0.84% 0.65
the sustainable tokenomics of Web3 games,
X-Consoles by 0xnft 1.27% 0.65
tokens should be used effectively in and out of
Flower Fam – Official 0.60% 0.92
the platform and game such as payment
Alpha Kongs Club – AKC 0.37% 2.07 methods, voting rights and access rights.
Nifty League DEGENs 0.17% 2.77
Ninja Squad Official 1.44% 3.79
The analysis of DVL12 and MCap/TVL13 of several
Web3 games shows a common trend that in the
Galaxy Fight Club 0.72% 3.97
majority of the cases, the DVL tends to be higher
Gridcraft Genesis Identities 0.95% 6.49
in the earlier stages due to the influx of
Supducks 7.45% 7.39 participants game economy ecosystem,
CyberKongz 4.07% 8.04 followed by the increase in MCap/TVL as the
EtherOrcs 18.87% 8.84 volume of tokens in circulation increases, and
Realms (for Adventurers) 15.27% 17.74 the ultimate decrease in DVL caused by higher
Wolf Game 0.43% 19.98 market cap. The eventual decrease in DVL can
enhance the sustainability of tokenomics but
Impostors Genesis Aliens 46.18% 28.67
may lead to user attrition due to lower expected
NFT Worlds 10.89% 59.73
returns, and balancing these two aspects is a
NeoTokyo Citizens 61.97% 70.44
key element in designing a successful web3
Metroverse 220.78% 131.54 game economy.

Figure 5-1. Web3 Game DVL, MCap/TVL

12 DVL(Daily Value to Liquidity ratio) indicates how much liquidity is granted every day compared to the total market cap of the
project. The lower the ratio, the project is more likely to maintain a healthier tokenomics.
13 MCap/TVL(Market Cap to Total Value Locked ratio) MCap / TVL calculates the total value of all tokens distributed and compares
it with its TVL. MCap / TVL of lower than 1 is considered a sustainable healthy tokenomics system, while that of 1 or higher is
considered highly variable and unsustainable.

27
 Pomerium Vision Statement

5.1.3 Loss of Control Over Game Economy

Another key cause behind the limitations of Web3 game economy is the game economy’s exposure to external pricing
power, which leads to the loss of its own pricing power and self-control based on supply and demand. This is opposite
of the existing in-game economy (closed economy), and a series of various issues occur following the game economy’s
loss of self-control. Failing to provide solutions to overcome such limitations of Web3 game tokenomics will restrict its
potential and deter its proliferation.

5.2 General Problem-solving Approaches

To overcome these deep-seated common and structural limitations of Web3 game economy and mature the industry,
its members are deploying various attempts and strategies.

5.2.1 Sustainability Strategy

Typically, Web3 games wish to adopt an economic model that maintains price stability and continues value creation
through means such as token supply control or deflation mechanism which can reward participants in the long term,
rather than offering large rewards in the earlier stages. Examples of this would be games restricting the outflow of game
tokens to outside the ecosystem to a certain extent, or operating the in-game token swap pool on the private chain to
exclusively exercise its liquidity supplying rights. Also, games may continuously utilize a part of its earnings to buy back
tokens, or provide a limited amount of reward in a competitive manner resembling that of PVP. Aside from these
measures, games seek various measures to prevent rewards provided in the form of NFT from being reused to obtain
greater mining gains or rewards in the ecosystem.

5.2.2 Balancing Early Participant Gains

Games make various attempts to balance out the gains between the early participants, who obtained tokens in the
earlier stages of the project, and the late participants. For instance, games attempt to provide fair rewards to the late
participants by adopting a long-term rewarding scheme which sets a lock-up period for tokens earned in the earlier
stages, or graded reward structure.

5.2.3 Utilizing Token Utility

Recently, Web3 games are actively adopting role-based ‘single token economy.’ This means that they are reducing the
weight of in-game tokens and instead reinforcing the role of governance tokens during gameplay. Through this, Web3
game users can obtain governance tokens through gameplay and take part in project decision-making. Some projects
have even made adjustments to the overall design by replacing in-game tokens with off-chain currencies, or artificially
controlling the issued and burnt amount of tokens to minimize price fluctuation.

Despite these efforts, the strategies and attempts are limited in completely resolving the structural issues of the Web3
game economy. In order to create a sustainable Web3 game economy, a more fundamental approach and innovation is
required.

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 Pomerium Vision Statement

5.3 New Components of Tokenomics 2

Regardless of whichever policies or strategies are reflected, the token’s faucet and sink act as an extremely important
determinant in considering the sustainability of a certain tokenomics. Tokenomics 2, a large-scale updated version of
the existing Pomerium tokenomics, focuses on the utilization and burning of various tokens. Through new inventory
staking, game vote system, own marketplace within the platform and DAO, Tokenomics 2 expands the existing
Pomerium ecosystem to provide various applications and sinks for PMG and PMR through which the tokens’ continuous
value chain and ecosystem stability will be further enhanced.

5.3.1 Inventory Staking

Inventory staking is the core of Tokenomics 2. This staking system allows game users, platform users and Guardians
Node operators to earn larger rewards by composite staking different types of assets, including PMG, PMR, game assets
and NFRs they own. While inventory staking allows composite staking of various assets, it can basically be activated by
staking PMG, Pomerium ecosystem’s governance token.

Depending on the duration of the staking period and the total amount of stakes consisting of multiple digital assets that
can be earned in the ecosystem, users can expect greater staking rewards by gaining more staking power. For instance,
Guardians owners can basically earn larger rewards, and win tremendous rewards by staking special NFTs which can be
obtained from onboarding games. (* Reward rates may be variable, and users may receive other forms of reward) Staking
rewards are provided in PMG and PMR: while PMG can be claimed without any further actions, PMR can be claimed only
after participating in the game vote system.

Figure 5-2. Pomerium X Inventory Staking

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 Pomerium Vision Statement

5.3.2 Game Vote

For final claiming of PMR earned as staking reward,
users must participate in the game vote system, to vote
for games that are scheduled to be onboarded to
Pomerium X. By voting for the game of their choice,
users can receive game assets and special pre-release
items (NFTs) from the upcoming game as a reward for
voting, and can claim the remaining PMR after
subtracting the amount of PMR they used to vote. Users
not particularly interested in games may participate in
minimum votes and claim remaining PMR, while those
with greater interest may vote a larger amount of PMR
and expect larger rewards such as corresponding game
assets or extremely rare items (NFT). The combination
of inventory staking, and game vote system offers users
a wider variety of asset portfolio and reward methods to
meet each user’s demands, allowing a more varied user
experience. As game developers will earn PMR through
pre-sale of game assets and NFTs prior to official
release, they will enjoy outcomes similar to that of IGO
(Initial Gaming Offer).

Figure 5-3. Pomerium X Game Voting System and Rewards List

5.3.3 PMX (Pomerium Extension Token)

PMX is an illiquid token14 newly introduced under Tokenomics 2. PMX is an exclusive
governance and utility token for game developers to be used in Pomerium X, which can be
earned in a predetermined proportion to the amount of PMR earned through user votes, and
all PMR will be burnt during the process of exchanging PMR to PMX. Game developers can
use PMX in Pomerium X to purchase in-platform services such as platform fee, banner ads,
marketing, higher rank conditions on game rankings, and also to designate special staking
NFT which can provide the greatest staking power boosts. Token not listed on exchanges
and not distributed outside the platform

Top-ranked games on the game rankings may receive additional funds from Pomerium X depending on their PMX
holdings, and game developers will receive graded benefits based on their PMX holdings following RSR (revenue-
sharing ratio) adjustment between them and the platform. PMX used on the platform will be burned.

14 Token not listed on exchanges and not distributed outside the platform

30
 Pomerium Vision Statement

Figure 5-4. Game Ranking System Based on PMX Token Holdings

5.3.4 P2O (Play to Own)

P2O refers to a permanent gaming experience which the user can possess, transfer to other games, or trade the earned
items using blockchain technology. Compared to other general games, P2O of Tokenomics 2 highlights user’s ownership
over items to provide a better gaming experience. If P2O was limited to allowing permanent ownership of items obtained
through gameplay, they would simply end as mere collectibles after the service ends, just like regular game items.
Pomerium X offers not only P2O, a game asset management ecosystem in which new values are given to user-owned
items.

5.3.5 Marketplace
Pomerium X’s own marketplace supports PMR integrated payment in personal transactions of multi-chain-issued NFTs
from each game, and also allows users to switch these NFTs into high-liquidity mainnet NFTs using 3rd-party interchain
and sell them. While the marketplace supports multi-chain, users do not need to possess multiple mainnet tokens and
can make payments for multi-chain NFT transactions with PMR token, offering them enhanced payment interface UX.
The settlement for every transaction on the marketplace such as network gas fees, and revenue settlement among
game developers, sellers and the platform through AA’s Paymaster, through which the developers can expect
continuous fee revenue from secondary transactions between users.

5.3.6 DAO
Users can activate ecosystem participation through DAO in proportion to the amount of PMG staked for inventory
staking. The amount of staked PMG and governance participation is in proportion.

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5.4 Tokenomics 2
Pomerium X proposes a sustainable economic model between game developers and users through a whole new
Tokenomics 2. In this new scheme, composite asset management of game assets and tokens is linked to the core
indices demanded by the developers based on inventory staking, and developers repeatedly update attractive in-game
items (NFT) as qualification for voting rights in order to expedite this. All of this was designed to create a virtuous cycle
of increasing TVL across tokens and decreasing distribution by burning PMG used in the entire transaction path through
AA’s Paymaster.

Use PMX
Fee Free
Pay gas fee for Game Users

NFT Sales Revenue

Purchased NFT

NFT
Purchase
NFT Reward
NFT Sale

Game Corp User Marketplace Platform Platform

Fee
NFT
Creator
Fee

Inventory Staking
Staking Reward

Burning after Staking

Staking Reward

Voted PMR
Paymaster (ERC-4337)
Fee Free : Stage where no gas fee occurs Vote
Pays PMG as gas fee regardless of the
network (Paid PMG are burnt)
Platform first pays onchain fees of fee NFT Minting
free stages for the gaming company,
and the company later redeems the
prepaid fees through PMG.

Figure 5-5. Tokenomics 2

Tokennomics 2 Tokennomics 2 Tokennomics 2

PMR
PMR

PMG
PMG

Circulation Supply Total Value Locked Burned Amount

PMR Aggregate Total Value Locked (TVL) for PMG, PMR
PMG and PMR

Figure 5-6. Estimating On-Chain Index Changes Through Tokenomics

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 Pomerium Vision Statement

5.4.1 New Roles of Pomerium Ecosystem Tokens

In the new Tokenomics 2 of the Pomerium ecosystem, the two key tokens, PMG and PMR , will be expanded with
various functions and roles. PMG is used as the transaction fee for all ecosystem transactions and assumes additional
roles in governance. PMR provides various utility functions in addition to in-game asset transactions.

PMG (Pomerium Ecosystem Token)

PMG is a governance token that represents the Pomerium ecosystem with a total supply of 1 billion. In Tokenomics 2,
PMG assumes a new governance role through DAO, replaces mainnet gas fee (BNB) throughout the entire platform,
and is burned after being used as various transaction fees.

PMR (Pomerium Utility Token)

PMR is the utility token of the Pomerium ecosystem with a total supply of 10 billion. In Tokenomics 2, PMR's role
expands to include various utilities such as swapping for Pomerium IP game assets, serving as a payment method in the
marketplace, and being used for the stamina recovery of Pomerium IP NFTs after staking, where NFTs are not burned.

5.4.2 P2O for Maintaining Balance Between Users and Game Developers
The most dramatic change introduced by Tokenomics 2 lies in the enhanced P2O model, which allows user gameplay
not only to exchange tokens, but also to earn and monetize items (NFT) and even recreate profit by financing them on
the platform. Such changes will allow game developers to attract users towards their intended method and route, and
grasp control over the game asset market. As items(NFT) are the only type of asset through which the user can gain
profit, users are bound to follow the routes and perform missions related to the conversion rate determined by game
developers such as clearing a certain stage for more than 30 times, killing boss mobs for more than a certain number of
times, earning 300 golds and diamonds, etc. Through this, game developers can accurately estimate the volume of user
funnels and economic attractants, and also prevent excessive abusive actions in exploitation of imperfections of game
economy.

With the newly adopted P2O mechanism, Pomerium X does not directly intervene in the game economy of developers,
but ultimately assists NFTs issued by developers in maintaining a sustainable economy ecosystem through inventory
staking and other various platform policies. Through the virtuous cycle in which users reinvest in games to obtain better
NFTs and finance them on the platform to obtain bigger gains, they can maintain mutual balance with developers.

5.4.3 Game Economy Inflation Control

In-game generation and accumulation of the items (NFT) without appropriate burning will lead to NFT inflation, and the
market value of items will continuously decrease. Game asset faucets must be equipped with appropriate sink models to
prevent and resolve in-game asset inflation issues.

Pomerium X applies an appropriate sink model on NFTs used on inventory staking to control inflation of NFTs issued by
game developers; this will allow the value of user-earned NFTs to be maintained at an appropriate level, and ultimately
contribute to the sustainable economy of games onboard the platform.

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 Pomerium Vision Statement

6 Development Plan
Pomerium Team is striving to make Pomerium X the builder which allows mass adoption of Web3 games. While the
game industry has rapidly shifted to, and is assessing the domains of Web3 and blockchain, factors such as token
issuance, virtual asset management, complicated tokenomics and wallet experience are considered as burdens by
game developers and users. Pomerium Team aims to eliminate such barriers and establish a sustainable Web3 gaming
ecosystem that benefits both the game developers and users. In particular, the team aims to enable onboarding of
game assets to Web3 without blockchain oracle issue through its self-developed Layer 0 technology, allowing more
game developers to easily join Web3 gaming. Through Pomerium X, Pomerium Team will play a leading role in the Web3
gaming market and create new visions.

6.1 Milestone
M1 2023, 4Q
Pomerium X Beta (close 1st) : Developer Console(Web3 Game Onboarding Tool)
Developer Console : Supporting Multi-chain Minting
Pomerium AA Beta

M2 2024, 1Q
Pomerium X Beta (close 2nd) : Legacy Pomerium.space Integration (stage 1.)
Game Store: Listing Onboarded Games
Tokenomics 2.0 Architecture
Pomerium AA Wallet SDK
Guardians : Supporting Multi-platform(Win, Mac, Linux)
NFT Store Launch

M3 2024, 2Q
Pomerium X Beta (open) & Release : Legacy Pomerium.space Integration (stage 2.)
Pomerium Zero Beta
Pomerium AA Advancement : MPC Application
Guardians : Audit Trail Update
Pomerium Official Github Release (Pomerium Zero & AA)
Game Ranking Launch
Marketplace Launch : Supporting Multichain

M4 2024, 3Q
Pomerium Zero in Operation
GAME VOTE Launch : IGO (Initial Game Offering)
Inventory Staking : Complex staking service of PMG, PMR, NFT, and game assets

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Pomerium Vision Statement